Experts are urging households to “take a reading” from their smart meter as soon as possible to ensure they have lower household energy bills.
This warning from Go. Compare Energy comes ahead of Ofgem’s energy price being lowered on July 1, which determines the maximum amount firms can charge per unit of energy and standing charge for households with average usage.
Between the beginning of next month and September 30, the average family on a fixed rate tariff will see their energy bills plummet by £122 over the period.
As such, Ofgem’s price cap will fall from £1,690 to £1,568 which means a possible seven per cent saving for customers.
However, experts are reminding consumers to submit their smart meter readings by June 30 or risk missing out on these savings altogether.
This is because doing so will prevent energy suppliers from charging customers more for energy than they otherwise have actually used.
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Ofgem is lowering the price cap next week
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This means millions of households only have a couple of days left to potentially bring their energy bills significantly amid the ongoing cost of living crisis.
Households have been forced to contend with record-high gas and electricity costs due to external pressures on the wholesale energy market and the impact of Russia’s invasion of Ukraine.
For April 1 to June 30, Ofgem lowered its price cap to £1,690 for a typical dual-fuel household paying by direct debits, a sizable drop from £1,928.
In the last year, the regulator cut the limit to £1,976 between July and September, with subsequent reductions to £1,834 annually from October to December 2023.
However, in the first three months of 2024, Ofgem’s price cap jumped slightly to £1,928 a year in light of the colder weather in winter.
Gareth Kloet, an energy spokesperson for Go.Compare Energy, broke down why it is important for families to take an up-to-date smart meter reading.
He explained: “Taking a meter reading on June 30th before the price drop comes into force will mean that your energy company cannot charge you at the higher rate for any units you use after that date.
“Even for those who have a smart meter, it’s a good idea to take meter readings regularly to make sure that your energy usage is being captured accurately and that you are being charged the correct amount for the units you use.
“Any fall in household costs will no doubt be welcomed by those across the UK but, with the cost-of-living crisis continuing, many may still be looking for ways to decrease their outgoings. While we cannot control the Price Cap, there are things you can do to help save on your energy costs at home.
“For example, if you aren’t already doing so, then opting to pay for your energy bills through Direct Debit could save you some money, as a number of energy suppliers will give you a discount for paying this way – it also means you don’t have to worry about forgetting to pay a bill.”
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Energy bills are finally dropping but households need to take an urgent meter reading PA
The energy expert also shared advice for households who are looking into switching deals to secure a cheaper tariff.
Kloet added “The energy market is still subject to fluctuations, but we are starting to see more and more deals coming to market.
“Take a look at what tariff you are on and any exit fees that come with it, and then it could be worth looking at a comparison website to see the options that are available to you.
“Also, if you’re fortunate enough to have a balance in credit with your energy provider, try to keep it in the bank in preparation for the winter months. But if you are struggling to make payments, talk to your energy provider, as they have a duty of care towards you.”